DOJ Defends $33M Fine Against Northrop Grumman

Law360, New York (May 16, 2012, 3:50 PM EDT) -- The U.S. Department of Justice on Tuesday defended the government's $33 million penalty against Northrop Grumman Corp. over allegedly improper employee stock incentive program costs included as part of indirect rate contract proposals, urging a federal judge not to throw out the dispute.

In a response to Northrop Grumman's motion to dismiss the government's counterclaims in a suit disputing the penalty, the DOJ argues that the U.S. complied with the parties' confidentiality agreement from failed alternative dispute resolution negotiations, and asserts that its allegations meet False...